Here come the price cuts. Tesco Direct has the 160GB model down to £175. but you can get another tenner lopped off of the price with the voucher code TDX-MNGK. As a number of helpful folk have pointed out in the OP on HUKD (thanks myst_eri), you can pick up a 500GB hard drive for around £35-40, and swapping HDDs over couldn't be easier, meaning you can essentially get a PS3 with a hard drive of upwards of 500GB for around £200.
Even if you don't want to fiddle around with the HDD, this is still one of the best deals to come around in months. Months I tell you!